Comments on: Coast has wave of worries as federally subsidized flood insurance nears endhttp://msbusiness.com/blog/2013/09/20/coast-wave-worries-federally-subsidized-flood-insurance-nears-end/
Mississippi Business JournalMon, 02 Mar 2015 03:07:15 +0000hourly1http://wordpress.org/?v=4.1By: Jay Williamshttp://msbusiness.com/blog/2013/09/20/coast-wave-worries-federally-subsidized-flood-insurance-nears-end/#comment-182008
Tue, 17 Dec 2013 19:33:51 +0000http://msbusiness.com/?p=80955#comment-182008The $24 billion deficit in the flood program was caused by the negligence of the US Army Corp of Engineers and Orleans Levee Board. Two levee breaks in New Orleans during Katrina flooding the entire city. Katrina went to the east of the city and had the leveies not been poorly designed and poorly maintained, they would not have failed causing the massive losses to the flood insurance program. US Army Corp of Engineers has acknowledged this and has spent 19.3 billion constructing a new levee system so it will not happen again.

Bottom line is that no changes were needed to keep the flood insurance program solvent other than an injection of cash from the corp of engineers for their negligence.

]]>By: Cherihttp://msbusiness.com/blog/2013/09/20/coast-wave-worries-federally-subsidized-flood-insurance-nears-end/#comment-164361
Sun, 22 Sep 2013 20:49:27 +0000http://msbusiness.com/?p=80955#comment-164361this is NOT just a coastal issue, but instead, a National issue affecting nearly 1.2 million Americans, with far reaching ramifications that affect our nation, as a whole.

IE: My friend lives in a home, valued at approximately $70,000, about 2 miles from the coast. She is the last person in her block that is located, in flood zone AE. If the quotes from the insurance agents are accurate, her premium in November will escalate. She has a small mortgage on her home and is required to carry flood insurance. She lives on social security and a small pension. She cannot afford any increase in premium.

For years we have been living under the delusion that we were paying our premiums. Never realizing that our flood policies were “subsidized” by the federal government. A GOVERNMENTAL bait and switch, if you will.

“Had I known 18 years ago, that one day, I would not be able to afford my insurance premiums, unless I elevated my home, I would have never done the renovations and additions to my property.”

This has been kept under wraps by our government officials and they need to be reminded of their duties to the people they represent. As well as the cost to our nation.

Nationally – every coastal state, river plain area, etc. is wholly affected, just as we are. Every community and business, whether located directly on the water or further inland, in a flood plain, is affected. A deluge of mail from their constituents should get our government official’s attention.

This National problem, I fear, will effect our economy. This issue may well be the NEW decline of the housing market and banking collapse. Even the stock market may be affected.

Many people have stated they cannot afford these immense premiums (again, no one knew their premiums were subsidized). Most have stated that they will wholly stop paying their mortgages. Ride out the foreclosure process and let the banks take back their homes.

Others will choose to cash out retirement savings & stock accounts to pay off mortgages. So that they won’t have to carry flood insurance at all, causing potential problems in the stock market, as well as reducing their retirement income for the future and incurring excess taxes, via capital gains, which could have been deferred till retirement, plus penalties for cashing out IRA’s and 401K’s.

Citizens throughout the country need to be advised to tackle this problem. This is not something we, as a community, are facing alone. Remember 1.2 million Americans and businesses, both coastal and inland, are affected. The ripple effect of the Biggert – Waters Flood Insurance Reform Act could be devastating.

]]>By: Michael Wardlawhttp://msbusiness.com/blog/2013/09/20/coast-wave-worries-federally-subsidized-flood-insurance-nears-end/#comment-164299
Sat, 21 Sep 2013 15:13:27 +0000http://msbusiness.com/?p=80955#comment-164299My wife and I have been looking at properties in Long Beach and Pass Christian along Highway 90 so that we can retire. The rapid increases in flood insurance premiums is given us plenty of reasons not to buy! It is such a nice area with a rich heritage and it is a shame a more reasonable approach seems out of reach.
]]>By: Bryanhttp://msbusiness.com/blog/2013/09/20/coast-wave-worries-federally-subsidized-flood-insurance-nears-end/#comment-164231
Fri, 20 Sep 2013 13:03:10 +0000http://msbusiness.com/?p=80955#comment-164231While the rate increases are inaccurately presented at the beginning of the article (the law requires 20% a year increases for primary residences based on the difference of what you are currently paying and what the law will require you t pay: i.e. if you pay $1,000 now and the law says you should be paying $11,000, your rate will increase $2,000 a year for 5 years), the end of the article says it all. While supporters of this law say these properties should be paying “actuarial rates,” that is not what is actually happening. In addition to the actual rate of the insurance, homeowners will be required to get the program out of the $24 billion deficit in 10 years! So how is that actuarial rates if a person has to pay for the full value of the property every 8-10 years?
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